Word up, peeps! Let’s close out this week’s intraday charts update with a couple of channel setups on GBP/CAD and USD/CAD. Whoa! I just noticed that I’ve been serving up chart patterns all week long. How sweet is that?
GBP/CAD has been trending lower while bouncing up and down inside that there descending channel.
And as you probably guessed, one of the more conservative ways to play a descending channel is to look for opportunities to go short on the pair when the pair is at the channel’s resistance area.
Well, check that out, dawg! As y’all can see, the pair is currently testing the channel’s resistance area. And the said resistance area happens to line up rather nicely with the 1.6900 major psychological level.
Moreover, stochastic is already signaling overbought conditions and all that. Y’all therefore better start lookin’ for opportunities to short the pair.
Anyhow, if or when the pair does start movin’ back down again, then them bears will likely be gunning for 1.6740 again. 1.6740 has been holding as support recently, though, so you may wanna start thinkin’ about taking some of your profits off the table when the pair does get there.
And as usual, just remember that there’s always a chance that the pair may break to the topside instead. So if the pair does stage an upside breakout and clears the key price area at 1.6970, then y’all may wanna think about bailing yo longs or even switching bias.
After smashing past support at 1.3390, USD/CAD found fresh buyers at 1.3210 and price action began tilting higher, forming that there fresh ascending channel in the process.
Y’all probably thinkin’ that I’ll tell ya to start lookin’ for an opportunity to go long when the pair reaches the channel’s support area and all that.
However, there’s currently a higher-than-average chance that the pair may stage a downside channel breakout instead since stochastic is presently at overbought territory. The pair needs to smash past 1.3210 to confirm the downside channel breakout, though.
Anyhow, if the pair does test the channel’s support area, then you may wanna wait until a reversal candlestick pattern forms or something like that to confirm that bulls are really in control.
Also, if the channel’s support somehow holds, then just keep in mind that sellers are likely waiting at the former support area at 1.3390. In any case, just make sure to practice proper risk management, a’ight?
Peace! See y’all next week!